[coffeeguyzz]

Excellent numbers that show, among other things, the price advantage of heat energy when it is contained in gaseous, rather than liquid, form.
Overcoming the physical hurdles will be the challenge.

I googled the 'mid scale'/'small scale' LNG world today and still find it amazing how innovation constantly arises in human affairs.
The outfits that are cutting edge in the liquefaction realm are being matched by the transportation/storage boys as ever smaller markets are targeted.

To compare the cost and capacity of, say, Yamal ... 27 billion bucks for about 17 mtpa ... or the 3 Curtis Island projects costing about 60 billion and producing about 25 mtpa with the 2 ship MPEH which may produce 24 mtpa for under $10 billion.
That is a HUGE spread.

These types of numbers are prompting speculation that the 4 FSRU units proposed for south east Australia may be supplied by US LNG.

Now, THAT would raise a few eyebrows.

[coffeeguyzz]

Ohio just released their 3rd quarter Utica production numbers.

As they do not, AFAIK, total the output, I only scan down the per well production spreadsheet to see what's up.

Most probably another record as about 170 wells produced over 1 Bcf, 20 over 2 Bcf, and one - from Eclipse - an astonishing 3.6 Bcf in 90 days. (Sounds like it is one of their 20 thousand foot laterals).

For context, a year or so back only 30/40 wells broke the 1 Bcf threshold.
Expansion into Harrison and Jefferson counties continues.

For you folks who have limited knowledge of the hydrocarbon industry - especially those who think scarcity is immanent - this Ohio report, along with last week's Pennsylvania release - should provide hard evidence that the US possesses an almost unfathomable amount of natgas.

Appalachia Rising!!

[GHung]

$this->bbcode_second_pass_quote('coffeeguyzz', ' ')........

For you folks who have limited knowledge of the hydrocarbon industry - especially those who think scarcity is immanent - this Ohio report, along with last week's Pennsylvania release - should provide hard evidence that the US possesses an almost unfathomable amount of natgas.

Appalachia Rising!!

[GoghGoner]

This week's rig count for Appalachia has it dead even yoy. Over the last year Ohio has -8 rigs, WV has +5, and Penn has +3. The EIA has posted natural gas production declines for 2 straight months in Ohio. Overall Appalachia has still been adding production but I would expect the next 6 months or so to add very little compared to the past few years.

[rockdoc123]

An interesting article regarding negative natural gas prices in the US as a consequence of large supply and lack of egress. It is amazing that when everyone is worried about shifting to alternatives producers are giving away a very clean energy source at a loss.

https://www.hellenicshippingnews.com/why-are-u-s-natural-gas-prices-in-texas-below-zero/

$this->bbcode_second_pass_quote('', 'W')HY IS THERE SO MUCH NATURAL GAS SUPPLY?
The Permian is the nation’s largest shale oil field, where production now exceeds more than 4 million barrels per day (bpd). But oil output also produces what is known as associated gas, seen by crude drillers as a waste product to be burned off or “flared” because there are not enough pipelines to remove it.

Construction of new oil and gas pipelines in the Permian has not kept up with output, which has more than doubled over the past three years as the United States has risen to become the world’s largest oil producer.

But while oil can be stored in tanks and transported by truck or train, gas can only be transported by pipe, burned, or if special equipment is available, re-injected into the ground.

Recently, compressor problems on a pipeline in New Mexico exacerbated the problem, as it closed off a key artery for the gas.

HOW MUCH GAS IS BEING FLARED?
It depends on who you ask. Permian drillers flared a record 0.4 billion cubic feet per day (bcfd) in the third quarter of 2018 and are expected to flare at least 0.6 bcfd by mid-2019, according to Oslo-based energy data provider Rystad Energy.

One billion cubic feet of gas is enough to fuel about 5 million U.S. homes for a day.

Permian flaring came to 0.15 bcfd and 0.11 bcfd in 2017 and 2016, respectively, according to Texas Railroad Commission data interpreted by the Environmental Defense Fund (EDF), an environmental group.

[Tanada]

$this->bbcode_second_pass_quote('', '[')b]US energy department rebrands fossil fuels as 'molecules of freedom'

Press release from department said increasing export capacity is ‘critical to spreading freedom gas throughout the world’

America is the land of freedom, as any politician will be happy to tell you. What you don’t hear quite so often is that the stuff under the land is also apparently made of freedom as well. That is, at least according to a news release this week from the Department of Energy (DoE).

Mark W Menezes, the US undersecretary of energy, bestowed a peculiar honorific on our continent’s natural resources, dubbing it “freedom gas” in a release touting the DoE’s approval of increased exports of natural gas produced by a Freeport LNG terminal off the coast of Texas.

“Increasing export capacity from the Freeport LNG project is critical to spreading freedom gas throughout the world by giving America’s allies a diverse and affordable source of clean energy,” he said.

The concept of “freedom gas” may seem amorphous, but it’s actually being measured down to the smallest unit.

“With the US in another year of record-setting natural gas production, I am pleased that the Department of Energy is doing what it can to promote an efficient regulatory system that allows for molecules of US freedom to be exported to the world,” said Steven Winberg.

It’s unclear if members of the Trump administration attempting to assign patriotic intentions to natural gas are aware of the silliness of the concept, but Rick Perry seems to believe in it.

“Seventy-five years after liberating Europe from Nazi Germany occupation, the United States is again delivering a form of freedom to the European continent,” the energy secretary said earlier this month, according to EURACTV.

“And rather than in the form of young American soldiers, it’s in the form of liquefied natural gas.”

[coffeeguyzz]

The explosive rise of natgas consumption, particularly in the form of LNG, is going to catch many people by surprise.

The rapid adoption of FSRU hardware (Floating Storage and Regasification Untits) is enabling countries such as Turkey, Pakistan, Brazil, Bangladesh, Argentina and others to become importers in exceptionally fast and cheap fashion.
Bangladesh is setting up its second unit.

Even Australia - second biggest LNG exporter in the world - is setting up an FSRU in Port Kembla to import LNG by next year.

The liquefaction end is likewise experiencing a blindingly fast transition as modularization techniques combined with dramatic downsizing of components is enabling the spread of liquefaction processing into heretofore unimaginable locations.

Wyalusing, Pennsylvania is hosting a 2.15 million tonnes per year LNG project that should cost way under $1 billion.
Floating liquefaction plants like the 4 proposed for the Delfin project will be another game changer.

Downstream, consuming operations are also changing rapidly.
The 500 room TWA Hotel just built at JFK airport has it's own CHP (Combined Heat and Power) plant that uses piped natgas to provide heating, cooling, and electricity generation with it's own hardware.
The $15 million setup - using reciprocating engines - was manufactured in Canada, shipped to NYC, and assembled onsite.
Expected savings on utility bills are $4 million/year.

Age of Gas is right around the corner, folks.

[rockdoc123]

$this->bbcode_second_pass_quote('', 'A')ge of Gas is right around the corner, folks.

[yellowcanoe]

Shouldn't the title of this thread be changed to "America the Saudi Arabia of Molecules of Freedom Shifts to Export"?

[coffeeguyzz]

To get just a glimpse at the scale of US natgas resources, one need look no further than the 1st quarter Ohio production report (almost all Utica) which was just released today.

27 wells produced over 2 Billion cubic feet over these past 3 months with an additional 130 producing over 1 Bcf.
For context, the USGS assessed 38 Trillion cubic feet Technically recoverable back in 2012.
To arrive at this number - 38 Trillion - the USGS used a lifetime recovery of .6 Bcf ... say again ... POINT SIX bcf per well over a 30 year lifespan.
So ... we now have hundreds of wells pulling out 2/3 times the gas in a couple of months that the USGS did not project to be recovered over several decades.

When the next assessments are released for both the Utica and the Mighty Marcellus, the numbers will absolutely rock the hydrocarbon world.

[sparky]

.
Meanwhile in Europe the pipeline wars are full on
Nord stream 2 is being impeded by the Danish environment agency asking for a third assesment on the pipeline route
the Opal pipeline can be used by Gasprom for only 50% capacity ( it's the only supplier )
Turk-stream is nearly finished and the Bulgar government has finally given the OK to the extension toward Serbia

all of this is mere background to the main issue , the renewal of supply transit conditions through Ukraine to the EU
while the EU own gas production is declining

last week tripartite talks ( EU Ukraine Russia ) went nowhere and they will meet again in October
the decade long contract expire in end of December , stopping all other pipelines is creating pressure on Russia
while the Ukrainian position is rather weak in spite of US / Polish support

in the other direction the link to China , called "power of Siberia" is being filled with gas now for final testing

[dissident]

$this->bbcode_second_pass_quote('sparky', '.')
Meanwhile in Europe the pipeline wars are full on
Nord stream 2 is being impeded by the Danish environment agency asking for a third assesment on the pipeline route
the Opal pipeline can be used by Gasprom for only 50% capacity ( it's the only supplier )
Turk-stream is nearly finished and the Bulgar government has finally given the OK to the extension toward Serbia

all of this is mere background to the main issue , the renewal of supply transit conditions through Ukraine to the EU
while the EU own gas production is declining

last week tripartite talks ( EU Ukraine Russia ) went nowhere and they will meet again in October
the decade long contract expire in end of December , stopping all other pipelines is creating pressure on Russia
while the Ukrainian position is rather weak in spite of US / Polish support

in the other direction the link to China , called "power of Siberia" is being filled with gas now for final testing

[sparky]

.
Danemark has just given the OK to a pipeline , not Nord Stream 2 ....the Norway\Poland one
it will run in the same area and has been stamped in record time

meanwhile the latest EU Ukraine Russia talks on the renewal of gas transit to Europe contract has utterly failed
the contract expire in 1 January 2020 so the timing is very tight
the storage are chock-block full but this is starting to make people nervous

[sparky]

.
Well , things are moving ,
Denmark has approved the Nord Stream 2 pipeline route through its territorial waters
it seems like the Ukrainian goose if cooked

[dissident]

$this->bbcode_second_pass_quote('sparky', '.')
Well , things are moving ,
Denmark has approved the Nord Stream 2 pipeline route through its territorial waters
it seems like the Ukrainian goose if cooked

[sparky]

.
The Transit fees were used as offset for paying for Russian gas
Ukraine use a lot of it and was thus getting it for "free"
if the volume of transit gas decrease substantially Ukraine will have to pay for it ....a novel experience
for thirty years Kiev as been on the Russian teat

[dissident]

$this->bbcode_second_pass_quote('sparky', '.')
The Transit fees were used as offset for paying for Russian gas
Ukraine use a lot of it and was thus getting it for "free"
if the volume of transit gas decrease substantially Ukraine will have to pay for it ....a novel experience
for thirty years Kiev as been on the Russian teat

[EnergyUnlimited]

$this->bbcode_second_pass_quote('dissident', 'S')o the MSM wants to have its cake and eat it too. They claim that the shut-down of transit of Russian gas through Ukraine is really bad for Ukraine, but then claim that Ukraine does not really benefit much from the transit fees.

[sparky]

.
While the US is twisting European knikers in knots , things are happening at the other end of the world
the "power of Siberia" pipeline will be put on line in December
with a ceremony with Prez Putin and Xijinping in teleconference

Southward the "Turk stream" is being filled and will start pumping , the connection to the European network is going to be through Bulgaria , Hungary and Serbia .it is being worked on now with great dispatch
https://www.businessinsider.com/hungary ... ?r=AU&IR=T

It should be noted that , OH surprise all those supply line will be through Russia friendly countries
obviously someone has been thinking this through for a long while

the tripartite talks between the EU , Ukraine and Russia are painfully slow
Russia has stated that the dropping of the Stockholm arbitration ruling granting some two billions dollar to Ukraine
is quote ...." the main impediment "

Gazprom totally rejected the ruling as absurd likening it to someone being robbed having to pay the robber

pretty soon it will be a question of where and how will Russia send its considerable but not endless resources in gas

[Tanada]

$this->bbcode_second_pass_quote('sparky', '.')
While the US is twisting European knikers in knots , things are happening at the other end of the world
the "power of Siberia" pipeline will be put on line in December
with a ceremony with Prez Putin and Xijinping in teleconference

Southward the "Turk stream" is being filled and will start pumping , the connection to the European network is going to be through Bulgaria , Hungary and Serbia .it is being worked on now with great dispatch
https://www.businessinsider.com/hungary ... ?r=AU&IR=T

It should be noted that , OH surprise all those supply line will be through Russia friendly countries
obviously someone has been thinking this through for a long while

the tripartite talks between the EU , Ukraine and Russia are painfully slow
Russia has stated that the dropping of the Stockholm arbitration ruling granting some two billions dollar to Ukraine
is quote ...." the main impediment "

Gazprom totally rejected the ruling as absurd likening it to someone being robbed having to pay the robber

pretty soon it will be a question of where and how will Russia send its considerable but not endless resources in gas